Treasury Secretary Janet L. Yellen addressed a press conference ahead of the 2024 Annual Meetings of the International Monetary Fund (IMF) and World Bank, reflecting on the progress made since the height of the COVID-19 pandemic. She noted that three years ago, many meetings were virtual due to ongoing supply chain disruptions and new virus variants affecting global economic growth projections.
Yellen highlighted that while progress has been uneven across economies, "the global economy has proven resilient," with the United States playing a leading role in driving global growth. She attributed this to the Biden-Harris Administration's economic policies which led to a significant recovery in the labor market, low unemployment rates, and robust wage growth compared to other advanced economies.
The IMF recently upgraded its forecast for U.S. economic performance, recognizing it as a key driver of global growth. Yellen emphasized that this momentum is being sustained through major investments in infrastructure, manufacturing, and clean energy.
Beyond domestic borders, Yellen stated that from day one, the administration rejected isolationism and pursued global economic leadership to support worldwide economies. This includes efforts like responding to global conflicts such as Russia's invasion of Ukraine by implementing measures like a price cap on Russian oil and sanctions against Russian entities facilitating military activities.
Addressing Middle East conflicts, Yellen mentioned U.S. actions against Iran for regional destabilization efforts and additional sanctions following Iran's attack on Israel. The U.S. aims to increase stability in the region by ensuring aid reaches Gaza and supporting banking relationships vital for Palestinian banks.
Yellen also touched upon challenges threatening global growth such as debt vulnerabilities in emerging markets needing infrastructure investment. She discussed initiatives like the International Financial Institution Action Plan addressing food insecurity exacerbated by Russia’s war on Ukraine and increasing lending for food systems development.
In terms of health systems strengthening amid an mpox outbreak, she reiterated support for projects funded by the Pandemic Fund across multiple countries. On climate change, she noted MDBs' record climate finance commitments in 2023 and plans to mobilize private capital through various trust funds.
Concluding her remarks, Yellen stressed that investments will not yield results if low- and middle-income countries are burdened with debt service over development spending. She mentioned progress made with institutions like IMF quota increases but acknowledged more work is needed to support countries facing liquidity stress through frameworks like IDA replenishment.
Yellen affirmed confidence in sustained American economic leadership as crucial moving forward during this week’s celebrations marking 80 years since establishing Bretton Woods institutions before opening up for questions from attendees.
